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Price mechanism is a feature of
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- Capitalist economy
- Barter economy
- Mixed economy
- Socialist economy
- Capitalist economy
Correct Option: A
Price mechanism is an economic term that refers to the manner in which the prices of commodities affect the demand and supply of goods and services. It is essentially a feature of market-driven or capitalist economic systems. It is based on the principle that only by allowing prices to move freely will the supply of any given commodity match demand.